Tuesday, September 20, 2011

"AirAsia, the world's best low cost airline for three consecutive years, is once again giving away *free seats to selected domestic and international destinations such as Langkawi, Banda Aceh (Indonesia), Hat Yai (Thailand) and Singapore, and many other exhilarating destinations at very low fares.
The ‘FREE SEATS’ booking period starts at 12am (+8GMT) on 21 – 25 September 2011 for the travel period from 3 May - 27 October 2012.
Log on to www.airasia.com to find out more. To avoid the expected high traffic due to the promotion, guests who wish to travel before 1 January 2012 can click at the link provided on the main webpage in order to conduct their transactions smoothly,'' a statement issued by the company said.

The International Air Transport Association (IATA) has revised its industry profit expectations to US$6.9 billion, up from US$4.0billion it predicted in June for the year.

In a statement it said "As emphasized that, despite the improvements, profitability at these levels is still exceptionally weak (1.2% net margin) considering the industry’s total revenues of US$594 billion.''

In its first look at 2012, IATA is projecting profits to fall to US$4.9 billion on revenues of US$632 billion for a net margin of just 0.8%.

“Airlines are going to make a little more money in 2011 than we thought. That is good news. Given the strong headwinds of high oil prices and economic uncertainty, remaining in the black is a great achievement,” said Tony Tyler, IATA’s Director General and CEO.

“But we should keep the improvement in perspective. The US$2.9 billion bottom line improvement is equal to about a half a percent of revenue. And the margin is a paltry 1.2%. Airlines are competing in a very tough environment. And 2012 will be even more difficult,” said Tyler.

IATA’s forecast is built around global projected GDP growth of 2.5% in 2011 falling to 2.4% in 2012. Airline financial performance is closely linked to the health of world economies. Whenever GDP growth has slowed below 2.0% the airline industry has lost money. “We will be perilously close to that level at least through 2012. The industry is brittle. Any shock has the potential to put us in the red,” said Tyler.

Global airlines will buy US$3.5 trillion of aircraft

LONDON: Global airlines will buy US$3.5 trillion of aircraft over the next 20 years to meet relentless demand for travel to and from Asia's burgeoning “mega-cities” and renew ageing fleets in the West, according to Airbus.
The world's largest civil jet maker raised its forecast for airplane deliveries over the next 20 years by around 8% to 27,800 aircraft as part of an annual market survey. The figure includes 900 freighters to keep up with a projected expansion in global trade.
The European company shrugged off turmoil in financial markets, saying population growth and urbanisation would continue to promote strong aviation demand. The industry has recovered more quickly than expected from the last recession but some are nervous over the short-term outlook.
“People need and want to fly more than ever before,” Airbus said in a statement.
“Over the next 20 years the aviation sector is expected to remain as resilient to cyclical economic conditions as in the past.”
Revenue passenger kilometres the number of people boarding planes adjusted for the distance flown would grow by an average 4.8% per year, which is equivalent to traffic more than doubling in the next 20 years, Airbus said.
Boeing is even more optimistic, with a recent forecast of 5.1% a year.
The predictions underscore soaring demand for narrow-body or single-aisle jets like the Boeing 737 and Airbus A320, the backbone of many airlines.
Both plane makers have decided to refresh their best-selling models with new engines to cut fuel costs and see off newcomers such as Canada's Bombardier or builders in China and Russia.
Airbus raised its demand forecast for these 100-200 seat aircraft by 7% to 19,200 airplanes worth US$1.4 trillion between 2011 and 2030. Boeing sees a market worth US$2 trillion, though its data includes airplanes from 90 seats upwards instead of 100.
Airbus and Boeing are increasing production rates to keep up with demand.
There is concern, however, over what the plane makers' optimism means for airlines on the eve of a widely-watched airline industry profit forecast from lobby group International Air Transport Associa-tion.
The association halved its forecast for 2011 airline profits in June and could trim it again in the light of Europe's debt crisis and fears of a new US recession.
Premium travel is where airlines make most of their profits and is seen as a sensitive guide to business confidence.
Many airlines are investing in new lightweight airplanes to lower their fuel costs.
Airbus sees strong demand for wide-bodied twin-jets like the Boeing 787 Dreamliner, which is due to be delivered to its first Japanese customer next week after three years of delays, and smaller versions of its own A350. Airbus hiked its forecast for 250-300 seat jets by 11%.
The Airbus survey also acts as a signpost to the next big battle with Boeing over the future of mini-jumbos like the Boeing 777, which Airbus has countered with its planned A350-1000.
Boeing must decide in the next year or so whether to redesign the 777 or just commission a replacement for the world's largest civil jet engines as it tries to keep its dominance of the 350-400 seat market. Airbus sees demand for 2,100 new aircraft in this category over the next 20 years.
However, Airbus and Boeing continue to disagree on the demand for the industry's behemoths the Airbus A380, the world's largest airliner, with 525 seats, and Boeing's newly-revamped 747 jumbo.
Airbus sees a US$600bil market for airplanes with 400 seats or more, representing 1,781 units. Boeing sees demand for less than half that, just 820 planes - Reuters

Boeing (NYSE: BA) forecasts the Asia Pacific region will require hundreds of thousands of new commercial airline pilots and technicians over the next 20 years to support airline fleet modernization and the rapid growth of air travel.
The 2011 Boeing Pilot & Technician Outlook calls for 182,300 new pilots and 247,400 new technicians in the Asia Pacific region through 2030. The greatest need is in China, which will require 72,700 pilots and 108,300 technicians over the next 20 years.
"The demand for aviation personnel is evident today. In Asia we're already beginning to see some delays and operational disruptions due to a shortage of pilots," said Roei Ganzarski, chief customer officer, Boeing Flight Services. "To ensure the success of our industry as travel demands grows, it is critical that we continue to foster a talent pipeline of capable and well-trained aviation personnel."
North East Asia will need 20,800 pilots and 30,200 technicians over the next 20 years. South East Asia will require 47,100 pilots and 60,600 technicians. The Oceania region will need 13,600 pilots and 15,600 technicians and South West Asia will need 28,100 pilots and 32,700 technicians.
"As an industry we must make a concentrated effort to get younger generations excited about careers in aviation. We are competing for talent with alluring hi-tech companies and we need to do a better job showcasing our industry as a global, technological, multi-faceted environment where individuals from all backgrounds and disciplines can make a significant impact," Ganzarski added.
More information on the 2011 Pilot & Technician Outlook is available at http://www.boeing.com/commercial/cmo/pilot_technician_outlook.html.